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The average age of chief executive officers (CEO s) in a [#permalink]
01 Dec 2009, 08:42
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45% (02:05) correct
55% (01:32) wrong based on 196 sessions
The average age of chief executive officers (CEO’s) in a large sample of companies is 57. The average age of CEO’s in those same companies 20 years ago was approximately eight years younger. On the basis of those data, it can be concluded that CEO’s in general tend to be older now.
Which of the following casts the most doubt on the conclusion drawn above?
(A) The dates when the CEO’s assumed their current positions have not been specified. (B) No information is given concerning the average number of years that CEO’s remain in office. (C) The information is based only on companies that have been operating for at least 20 years. (D) Only approximate information is given concerning the average age of the CEO’s 20 years ago. (E) Information concerning the exact number of companies in the sample has not been given.
This is a good one. I think it should be C. The information is based on companies that have been operating for at least 20 years, is not an accurate representation of the ages of CEOs in general. There might younger companies with younger CEOs. Perhaps CEO's age just corresponds to the age of the company.
Even though the sample size is large, the fact that the study only only incorporates companies that have been around for 20+ years. The conclusion then states that " CEO's of companies in general now tend to be older ", but it does not consider companies that have been around for a shorter period of time.
The question states in a large sample the CEO's are on average 8 years older than they were 20 years ago. Because the question already tells you that a large sample is used, knowing the exact number of firms in the survey to determine whether the study is viable or not is not necessary. Also, so what if you know the number of companies that took the survey. That information is useless because you don't know how many firms out of how many considered took the survey. For example, if you know 50 firms took the survey. Is it 50 out of 100 firms or 50 out of 10,000.